Change rate after exchange of contracts?

KidA_3

Hi there,

I am about to buy a property and have been told the vendors are ready to exchange contracts. However, my current offer is with Alliance&Leicester 5 yr fixed at 4.84%. This rate has since dropped to 4.49%. Rather than switching to the lower rate now (and paying their £195 "post offer switcher fee") I wanted to wait until after the 4 August Bank of England announcement to see if they might drop it further the day after.

My question is, do I need to hold off signing the contracts and exchanging until I have sorted the lower rate change for my mortgage or are these two completely separate things? Obviously I would have to ensure I have the new rate in place by the completion date but can I exchange contracts immediately? Would the bank even allow me to change the rate if I have already exchanged?

Included in the papers for me to sign is the Mortgage Deed - would this commit me to the rate currently offered or could I still change to a lower rate after signing this? Wouldn't this be part of the exchange?

Grateful for any advice.

Thanks!

Voyager2002

I think you should ask your solicitor.

In principle, exchanging contracts commits you to buying the property and would be the same if you were a cahs buyer (ie not needing a mortgage). But there's bound to be a catch somewhere.